Task : Prepare a general journal

Assume that Brisbane Divers (ABN 34 255 712 444) operates as a partnership and you and your group members are the owners of that company. Brisbane Divers specializes in selling locally manufactured diving equipment and takes students on diving courses in its boat. The business charges GST on all inventory sales and dive lessons and pays GST on inventory purchases and most business expenses.

Employees

Brisbane Divers employs two casual assistants. Julia Hilton works as a dive instructor on the boat, and Peter Ball works in the shop selling stock, and taking bookings for dive lessons. Each employee works between 20 to 30 hours per week, depending on the season and demand. Payday is every second Saturday. The following information is used to calculate their wages:

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Name	Role	Gross pay- Per hour ($)	PAYG tax Per hour ($)
Julia Hilton	Dive instructor	25	6
Peter Ball	Shop assistant	20	5

At the end of July, Brisbane Divers owed 4 hours pay to both Peter and Julia.

Note: Do not use the employee section of MYOB, record the wages expense and tax as a cash payment. Goods and Services Tax All transactions which incur GST are identified, the GST is 10%

Goods and Services Tax:

Brisbane Divers pays GST of 10% on all business expenses, except Wages.

Merchandise Inventory:

The following is a list of closing inventory and the suppliers as at July 31 2018.

Each of the above items of inventory is quoted excluding GST.

Restocking inventory.

The required inventory is purchased on credit under the terms of payment required by the suppliers.

Your group members have a good relationship with each of the suppliers once your company places an order, the suppliers will deliver them free of charge the same day.

Lessons:

A part of Brisbane Divers income is earned from conducting diving lessons.

The lessons are quoted excluding GST. Lessons revenue must be recorded separately from sales.

Quantity on hand	Item Code	Description	Cost Price	Sale Price	Supplier
23	DMS	Diving Masks	$130	$250	Scuba Gear Ltd.
24	EPS	Exposure Protection Suits	$150	$280	Planet Dives Ltd
38	SNO	Snorkel	$10	$20	SeaWorld Ltd

Item Code	Lesson Type	Fee Course
DL	Diving lessons	$150

Suppliers account balances as at July 31, 2018:

Name	Address	ABN	Account Balance
Planet Dives Ltd.	400 Sydney Road, Wingy	30 444 777 333	$944
Scuba Gear Ltd.	11, Tide Towers Williamsville.	20 888 555 222	$1280
SeaWorld Ltd.	79 Rountree road, Spotswood	92 000 333 666	$2330

Each of the above account balances represents deliveries of inventory received on July 28th all purchases are on terms net 30 days.

Customer Information:

Brisbane Divers sells most of its inventory strictly on a cash basis, but the business has three credit customers. Terms of payment for these customers are net 30 days.

Name	Address	ABN	Date Last Invoice	Account Balance
Swimmers World	13 Colombo Street, , VIC 3292	50 999 555 666	July 26	$2 350
Brisbane Academy	47 Bloomy Road, , VIC 3292	92 555 888 111	July 19	$1 940
Westley Academy	33 Departure Drive VIC 4000	20 888 444 999	July 13	$4 400

Trial Balance as at July 31, 2018

Ledger Account	Debit ($)	Credit ($)
Bank	16 096
Stationery	2 500
Prepaid Insurance	3 000
Merchandise Inventory	6 970
Trade Debtors	8 690
Trade Creditors		4 554
Motor Vehicle	22 500
Accumulated Depreciation of Motor Vehicle.		6 850
Diving Equipment and Boat	38 900
Accumulated Depreciation of Dive Equip & Boat		11 230
Shop Fittings	5 750
Accumulated Depreciation of Shop Fittings		575
GST Collected		4 198
GST Paid	2 837
Capital		53 000
Loan - ANZ Bank, William Street.		25 500
PAYG Tax Payable		540
Wages Payable		136
Electricity Payable		660
	$107 243	$107 243

Transactions: August 2018

Date	Description
1	Paid rent for 2(two) months - $4,400 (GST Inclusive). [chq 90]
3	Paid Cash for vehicle expenses- $275 (GST Inclusive) [chq 91]
3	Paid Scuba Gear Ltd. for July account. [chq 93]
4	Received payment from Swimmers World for July account.
4	Purchased more inventory 25 x DMS, 20 x EPS, 25 x SNO
4	Cash sales: Inventory sold: 10 x DMS, 6 x EPS, 20 x SNO
4	Paid electricity bill for July $ 660(including GST) [chq 94

5	Five cash customers paid for diving course. ($150+ GST each person). The course commences on August 8 (since the service will be provided within August, consider this as cash sales for August directly. No need to record as unearned.)
7	Paid SeaWorld Ltd. for July account. [chq 95]
7	Paid advertising in the Williamsville Times - $275(GST Inclusive) [chq 96]
8	Sales Invoice sent to Swimmers World for the following items: 15 x DMS, 18 x SNO
9	Pay day. Julia was paid for 30 hours and Peter was paid for 22 hours, which includes wages owing from July [chq 97 and 98]
12	Received payment from Brisbane Academy World for July account.
14	Cash sales: Inventory sold: 10 x DMS, 12 EPS
16	Cash drawings Cheque payable to one of your group members$5000[chq 99]
16	Paid Planet Dives Ltd. for July accounts. [chq 100]
19	10 cash customers paid for diving course. ($150+GST each person).( The course commences on 20th of August)
21	Received payment from Westley Academy for July account
23	Paid monthly repayment to ANZ for bank loan. $500 (includes $50 interest). GST is not payable on this transaction. [ chq 101]
23	Pay day. Peter was paid for 20 hours and Julia was paid for 25 hours. [chq 102 and 103]
25	Paid Electricity for August - $880 (GST Inclusive) [chq 104]
29	Swimmers World paid for items purchased on August 8.
31	Paid Telephone Expenses for August $660 (including GST) [chq 105]